QUARTER RESULTS: PRESCO PLC, MAY & BAKER PLC.


PRESCO PLC: TWO CHIPS FOR 2016.

From the results for the first quarter released recently, Presco PLC has to pay attention to two main chips if it hopes to end the year better than it started it.

According to the figures, Presco's corr revenue grew quite well within the quarter rising by 47.8% to N3181.4m.

It also did a good job on direct cost of generating this growth as cost of sale increased by 38.3% to N1177.9m.

It also scored a hit driving down distribution cost by 69.2% to N52.1m but it lost the battle over two other major chips.

In the first place, selling and general administration expenses increased by 63.4% to N424.5m and finance charges rose by 50% to N202.2m.

Both would have been easy to bear but the 76.2% drop on fair value gain to N253.1m and 7.62% decrease in Other operating income to N236.5m. Both had combined to decrease growth in total income to only 5.76% to N3671m.

Of course, this was a shadow of the growth in core revenue and also in spite of major drop in loss from foreign exchange to N17m from N127.9m.

In the end, Presco's profit before tax grew by only 0.33% to N1399.1m thus depressing margin to 38.1% from 2015's first quarter 40.2%.

Presco PLC also grappled with less liquidity as working capital deficit widened to N452.7m despite 24.3% rise in trade payables to N4373.1m and only 4.51% increase in receivables to N3120.4m.

Partly the pressure came from forward looking investment in fixed assets thus increasing its closing value by 16.1% to N23215.9m despite depreciation.

PRESCO PLC (Nm)
                     First quarter
                         2016.              2015
Total income   3671.0.          3471.2
Core income    3181.4.          2153.0
Cost of sale     1177.9.            851.6
Selling etc.         424.5.            259.8
Distribution          52.5.            169.1
Other op.income 236.5.           256.0
Finance cost.      202.2.           134.8
FX gain.              (17.0).          (127.9)
Fair asset value 253.1.          1062.2
Profit before tax 1399.1.        1394.5
Profit margin %    38.1.            40.2
Working capital (452.7).      (413.0)
Trade payables 4373.1.        3356.1
Receivables.      3120.4.       2985.7
Fixed assets.    23225.9.     19990.0

MAY & BAKER PLC: LOOKING BETTER.

According to the results for the first quarter to March, May & Baker PLC looks set to surpass its performance in 2015 year. That is if the goodies in the quarter continue to hold.

The first goody was that 19.9% increase in core revenue to N1824.4m was strong enough to grow total income by 19.7% to N1832.1m as investment income eased by 38.3% to N3.66m and Other operating income rose sluggishly by 7.24% to N4m.

Then almost costs stayed in line with cost of sale growing by still manageable 19.2% to N1294.1m, distribution cost rising by only 2.46% to N232.8m and finance charges dropping by 41.5% to N123.1m.

Only administration cost danced put of tune with 25.2% increase to N145.6m.

Naturally, single trees find it hard to make a forest and so, May & Baker ended the quarter with N24.7m profit compared to loss of N42.2m by the first quarter of 2015.

It showed too in the company's liquidity position as working capital closed at N120.9m as against only N11m previously.

MAY & BAKER PLC: (Nm)
                       First quarter
                            2016.           2015
Total income    1832.1.         1532.0
Core income     1824.4.         1521.3
Cost of sale.      1294.1.         1085.4
Other op. Income   4.0.               3.73
Distribution.        232.8.            227.2
Administration.   145.6.           116.3
Investment income 3.66.           5.93
Finance charges  123.1.          144.3
Profit before tax    24.7.           (42.2)
Working capital    120.9.           11.0
Profit margin %.     1.35.          (2.76)

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